U.S. regulators have only met roughly a quarter of pre-2012 deadlines included in the controversial Dodd-Frank financial reform law, according to a report released on Tuesday.
A year and a half after Congress passed Dodd-Frank, regulators are struggling to keep pace with deadlines for hundreds of rules they are tasked with writing to help stabilize markets after the 2007-2009 financial crisis.
According to the report by the law firm Davis Polk, a total of 200 deadlines have passed as of the end of 2011, and regulators missed 149 of them. There are 400 total rulemaking requirements in Dodd-Frank, the report says.
They include regulations to oversee the formerly opaque $700 trillion global derivatives market, and tighten banking rules, among other things.
Despite the stark numbers, regulators moved forward on a number of the critical components of the legislation during the latter half of last year.
In December, the Federal Reserve proposed the much-awaited capital and liquidity rules for the largest U.S. banks and non-banks.
The proposals released are aimed at ensuring that financial firms have enough capital and liquid assets on hand to weather a future financial crisis. During the 2007-2009 crisis, taxpayers put up $700 billion to bail out the financial system, partially through capital injections into banks.
Also in December, the Commodity Futures Trading Commission finalized rules on swap data reporting and record keeping, while in October a group of regulators released the Volcker rule proposal that bans banks from trading with their own funds.
The Securities and Exchange Commission, tasked with drafting 98 Dodd-Frank rules in all, appears to be the most behind, having finalized only 19 percent of its rules whose deadlines are passed, according to the report.
Both the SEC and the CFTC have told Congress they have the resources to complete the Dodd-Frank rule-writing process, but have struggled to keep pace with the rigorous rulemaking timetable.
They have also warned that without larger budgets, they will have trouble enforcing new regulations.
(Reporting By Alexandra Alper; Editing by Bernard Orr)